The dream of owning a decent home is one shared by many, but access to financing remains a major obstacle for most people in Kenya. This is particularly true for members of the Jua Kali Contractors Federation of Kenya (JKCFK), who have been allocated 10 percent of all the Government of Kenya affordable housing units but have struggled to access financing to realize this benefit.
But now, there is hope on the horizon. HFC, the banking subsidiary of HF Group, has entered into a partnership with the JKCFK to provide access to credit and opportunities for enhanced participation in Kenya’s real estate value chain. The partnership, dubbed HFC Ujenzi na Makao, will see the bank provide the artisans with working capital, training, and capacity building opportunities to help them succeed.
Through the HFC Ujenzi na Makao programme, the Federation members will access working capital to facilitate works contracted for under the Government of Kenya’s affordable housing project. This includes financing for contracts in excavation, masonry, joinery, steel works, plumbing, and finishings.
But the partnership isn’t just about providing access to financing. The two parties will also create synergies in the real estate market by supporting Jua Kali artisans with value addition for their products and services for increased revenue generation. The goal is to help these entrepreneurs take advantage of the opportunities available to them and become the developers of tomorrow.
“As a bank, our key focus is on the development of the SME sector, and we are committed to strategic partnerships with the sector, which plays a critical role in empowering lives, poverty eradication, and the economic development of our country,” said HF Group CEO, Robert Kibaara. “Our partnership with the Jua Kali Contractors Federation provides tailor-made financing solutions to its members and clusters, within HFC’s lending policy, and is a testament to our commitment to living up to our Group’s purpose; enriching lives.”
The bank has set aside Kes 4 billion over the next few years to finance players in the affordable housing ecosystem, demonstrating its commitment to making homeownership a reality for more Kenyans.
This partnership is an exciting development in the world of affordable housing in Kenya. By providing access to financing, training, and capacity building opportunities, HFC and the JKCFK are empowering entrepreneurs and unlocking the potential of the Jua Kali sector. The future of affordable housing in Kenya is looking brighter than ever before.